2081 Tax Advantageous Investing

[QUOTE=Ivan]All my savings, such as they are, are in PEPs and ISAs here in the UK!! Are there any ways of saving tax free or in a tax advantageous way in Italy? I know that in France money can be invested in certain insurance schemes and a fixed percentage can be drawn out tax-free each year. Perhaps Italy has something similar? I am not sure if this Forum is the right one for this question but seems the most likely one.

Ivan.[/QUOTE]

Sorry Ivan, I haven`t got a reply. However, I`d like to know too, especially if there`s some way of saving very small monthly amounts rather like the UK ISA.

i think that the post office does a special libretto to save but it's only available to non residents so there would be no tax on the dividends...

In the same vein, it's now possible to add you property to a [i]SIPP[/i] (Self-Invested personal pension).

This means that the property is classified as an asset & so bumps up your total asset...... it also includes properties in a foreign country.

There are issues around valuation that should be explored though......and take financial advice from an independzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz, sorry.

Oh, yes and the price of investments can go up as zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

Those interested might want to do a bit more surfing in other forums though.

[QUOTE=tuscanhills]In the same vein, it's now possible to add you property to a [i]SIPP[/i] (Self-Invested personal pension).

This means that the property is classified as an asset & so bumps up your total asset...... it also includes properties in a foreign country.

There are issues around valuation that should be explored though......and take financial advice from an independzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz, sorry.

Oh, yes and the price of investments can go up as zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

Those interested might want to do a bit more surfing in other forums though.[/QUOTE]

But not an Italian property to a UK SIPP?

how come the issue of buying an Italian property via a SIPP has not been discussed yet? I thought that it was a good idea...apparently our compromesso states that we can buy for ourselves or for a third party to be nominated at the rogito....our solicitors explained the benefits of using this SIPP and I can see that the tax advantages are huge (first of all, no CGT!! :D :D ), but no one else has discussed this option yet....do you know of any other forums (not for serial investors though, but for simple people....:confused: ) where I can discuss the option which gabriel has suggested for us?

When I invest in Italy I take account of the ECB rate of interest, which has been lower than than in Engand, that means I get less. I also take account of the direction of Foreign exchange. Is my pound going to buy more Euros now than in the future? This determines whether I transfer large sums now or later. Regarding tax I normally get it gross in Italy. I have to sign papers saying I am non-resident and only pays UK tax on it when I remit the money to my account in England. (At least that is what I have been doing so far).

When I invest in houses I consider different criteria.

So far as SIPP is concerned I am talking to my IFA about it (Apart from administrative matters, my pension company deals with me through my IFA). There are also one or two firms who are now specialising in that Area.

Good luck with your investment!

I've just read in the Telegraph on line that Gordon Brown has changed his mind on allowing residential properties to be held in SIPPS!

I read it too, it seems that in Monday's Pre-Budget Report Gordon announced that new rules on Self-Invested Personal Pensions (Sipps) would exclude all residential investment properties.

It's a bit of a (vast!) U-turn & likely to cause a ton of grief as it seems the commentators are trying to turn it into another mis-selling affair; probably just media tosh as most of those who advised clients about Sipp investments should have made it clear that the new rules were not finalised and that the tax breaks could not be guaranteed. I suppose that advisers who failed to do this or properly record that they did so, may find themselves in hot water, but it's unlikely that any decent advisors are that daft.

[QUOTE=Gerry]I've just read in the Telegraph on line that Gordon Brown has changed his mind on allowing residential properties to be held in SIPPS![/QUOTE]

First he did it when he encouraged the incorporation of thousands of limited companies (because there was no corporation tax on the first £10,000 of profit), only to announce a whole set of complicated amendments that eliminated the tax advantage of incorporation.

And now he has done it with SiPP's. Surely he could have just kept residential property and other certain tangible assets out of the legislation in the first place. He must have seen that the Pension Industry and potential SiPP settlors would invest lots of time and energy in something which was likely to be of huge benefit to them. All that productivity for nothing!!!!

I have just read the rules, and where investments or enhancements were made in anticipation of "A" day, for example off plan or property not fit for residential use, then there may still be some protection/relief, but only where the property does not become residential. Otherwise, the tax relief which was previously [I]banded about[/I], will no longer exist.

On the question of tax efficient saving in Italy; as far as I know, there are no specific schemes like PEP's etc. The Italians have a higher propensity to save then Britons, so perhaps they need less encouragement!!!

Generally income from capital is taxed in a regime outside the normal progressive system, so you pay less tax on it.

[QUOTE=Michael J Murphy ACA]....The Italians have a higher propensity to save then Britons, so perhaps they need less encouragement!!!......[/QUOTE]

I understood that the Italians do have a propensity to save but not within Italy (hence the tax amnesty)?

[QUOTE=tuscanhills]I understood that the Italians do have a propensity to save but not within Italy (hence the tax amnesty)?[/QUOTE]

Perhaps the Tuscans arrange their affairs in this way, but the the European Directive on Saving should make this less attractive.

And don't forget lots of saving gets done by ordinary working people without recourse to the type of offshore saving you allude to.

Historically Britons do not save as much as their European counterparts hence tax free incentives in the UK like PEP's and ISA's.